Gold could retreat back to $1,200 on technical and fundamental factors.
Gold could retreat back to $1,200 an ounce on technical and fundamental considerations. The precious metal has rallied from its December low of $1,122.75 but there seems to be limited further upside potential. RSI Oscillator is currently pointing to overbought levels, while prices are close to a reversal point at the 61.8% Fibonacci level at $1,280.10. That level also coincides with the possible end of the potential ABCD pattern.
Gold also faces mounting pressure for a rise in short-term interest rates. FOMC members of late have been talking up the rationale for a March interest rate hike. The scenario is building for gold to form new lows well below the $1,046 mark in the medium term. In the short run, gold could move toward the $1,280 mark before a breakout failure sends it sharply lower toward $1,200 in a matter of weeks.
Copper Market to See Deficit in 2017- RK Capital.
RK Capital Management LLC’s co-founder David Lilley expects copper supply will fall short of demand for the first time in 6 years in 2017 due to strike, technical interruption, lower ore grade and adverse weather, according to fx678.com. The deficit will reach 327,000 tonnes in 2017, and 266,000 tonnes in 2018, 270,000 tonnes in 2019 and 600,000 tonnes in 2020.
India's major brass and copper scrap prices dropped on Monday, while copper futures prices at India's Multi Commodity Exchange finished up as production stoppages at the world's two biggest mines lent support, though moves were muted as markets awaited further clues on US infrastructure spending from US President Donald Trump.
Copper prices at London Metal Exchange hit its highest since May 2015 on February 13 on news of a strike at BHP Billiton's Escondido copper mine in Chile and a contractual dispute that halted operations at Freeport-McMora.
Oil eases for second day on rising U.S. output, gasoline prices.
U.S. crude lost more ground on Wednesday on rising U.S. oil output, although OPEC production cuts continued to offer support. Gasoline was under pressure on the final trading day for the March contract, the final month in which gasoline that complies with environmental standards for winter-grade fuel is offered. Abundant supplies of the fuel, which has different additives from those required in the summer, have weighed on prices.
The Organization of the Petroleum Exporting Countries (OPEC) has cut its oil output for a second month in February, a Reuter’s survey found on Tuesday, allowing the exporter group to boost already strong compliance with agreed supply curbs on the back of a steep reduction by Saudi Arabia.
U.S. stockpiles rose 2.5 million barrels in the week to Feb. 24, according to a report from trade group the American Petroleum Institute. Gasoline stockpiles rose unexpectedly and distillate stockpiles fell more than expected, the API said. Crude declined slightly on the report.
Precious Levels
CS GOLD (APRIL) OVERVIEW:
TREND : BEARISH
RESIST 2: 29600
RESIST 1: 29500
SUP 1: 29200
SUP 2: 29000
CS SILVER (MAY) OVERVIEW:
TREND : BULLISH
RESIST 2: 44300
RESIST 1:44000
SUP1: 43600
SUP2: 43300
Base Metal Levels
CS COPPER (APRIL) OVERVIEW:
TREND : BULLISH
RESIST 2:415
RESIST 1:410
SUP1:400
SUP2:396
CS NICKEL (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2:755
RESIST 1:745
SUP1:725
SUP2:715
CS ZINC (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2:192.50
RESIST 1:191.50
SUP1:189.00
SUP2:187.50
CS LEAD (MARCH) OVERVIEW:
TREND : SIDEWAYS
RESIST 2: 155.00
RESIST 1: 154.00
SUP1: 150.00
SUP2: 148.50
CS ALUMINIUM (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2: 131.50
RESIST 1: 130.00
SUP1: 127.50
SUP2: 126.00
Energy Levels
CS CRUDE OIL (MARCH) OVERVIEW:
TREND : SIDEWAYS
RESIST 2:3700
RESIST 1:3650
SUP1:3550
SUP2:3500
CS NATURAL GAS (MARCH) OVERVIEW:
TREND : BULLISH
RESIST 2:193.00
RESIST 1:189.00
SUP1:177.00
SUP2:174.00
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